Stock Mover of the Day: Is Selling 52-Week Stock Like Nike Inc a Winning Strategy?

October 17, 2016October 17, 2016Louis Casey

The stock of Nike Inc (NYSE:NKE) hit a new 52-week low and has $48.89 target or 5.00% below today’s $51.46 share price. The 9 months bearish chart indicates high risk for the $85.03B company. The 1-year low was reported on Oct, 17 by Barchart.com. If the $48.89 price target is reached, the company will be worth $4.25B less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 2.42M shares traded hands. Nike Inc (NYSE:NKE) has declined 15.11% since March 14, 2016 and is downtrending. It has underperformed by 20.72% the S&P500.

Nike Inc (NYSE:NKE) Ratings Coverage

Out of 33 analysts covering Nike Inc. (NYSE:NKE), 22 rate it a “Buy”, 0 “Sell”, while 11 “Hold”. This means 67% are positive. Nike Inc. has been the topic of 103 analyst reports since July 29, 2015 according to StockzIntelligence Inc. The firm has “Overweight” rating by Piper Jaffray given on Friday, September 25. Brean Capital maintained Nike Inc (NYSE:NKE) rating on Wednesday, June 29. Brean Capital has “Buy” rating and $62 price target. The firm has “Neutral” rating given on Wednesday, June 1 by Bank of America. The rating was downgraded by Brean Capital to “Hold” on Wednesday, September 28. B. Riley & Co maintained Nike Inc (NYSE:NKE) rating on Friday, September 25. B. Riley & Co has “Buy” rating and $135 price target. The firm has “Buy” rating given on Friday, September 25 by Citigroup. Credit Suisse maintained the shares of NKE in a report on Friday, September 25 with “Outperform” rating. As per Tuesday, September 22, the company rating was maintained by Telsey Advisory Group. On Thursday, December 17 the stock rating was maintained by Jefferies with “Buy”. JP Morgan maintained the shares of NKE in a report on Wednesday, September 28 with “Overweight” rating.

According to Zacks Investment Research, “Nike, Inc.’s principal business activity involves the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. NIKE is the one of the largest sellers of athletic footwear and athletic apparel in the world. The company sells its products to retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in numerous countries around the world.”

Insitutional Activity: The institutional sentiment decreased to 0.87 in 2016 Q2. Its down 0.23, from 1.1 in 2016Q1. The ratio dropped, as 116 funds sold all Nike Inc shares owned while 470 reduced positions. 98 funds bought stakes while 413 increased positions. They now own 1.02 billion shares or 2.98% less from 1.05 billion shares in 2016Q1.
Wealth Architects Limited Liability has 0.88% invested in the company for 33,030 shares. Cadinha Limited Liability Company holds 0.06% of its portfolio in Nike Inc (NYSE:NKE) for 5,300 shares. Baldwin Investment Mngmt Lc accumulated 38,155 shares or 0.9% of the stock. Savant Llc holds 5,550 shares or 0.09% of its portfolio. Diam, a Japan-based fund reported 240,858 shares. Daiwa Grp Incorporated Inc has 264,120 shares for 0.09% of their US portfolio. Autus Asset Management Ltd Liability last reported 1.64% of its portfolio in the stock. Vigilant Cap Mngmt Ltd Liability Company reported 141,774 shares or 1.5% of all its holdings. Moreover, Roundview Limited Liability Corporation has 0.69% invested in Nike Inc (NYSE:NKE) for 33,955 shares. Tdam Usa accumulated 56,553 shares or 0.15% of the stock. Peapack Gladstone Financial Corporation, a New Jersey-based fund reported 34,250 shares. Horizon Kinetics Ltd accumulated 7,890 shares or 0.01% of the stock. Addenda Cap Inc holds 0.85% or 183,863 shares in its portfolio. Cape Ann Fincl Bank has invested 0.89% of its portfolio in Nike Inc (NYSE:NKE). Perkins Coie Tru Communication last reported 1,342 shares in the company.

Insider Transactions: Since April 19, 2016, the stock had 3 insider buys, and 5 selling transactions for $23.33 million net activity. Another trade for 135,764 shares valued at $7.99M was sold by SPRUNK ERIC D. Another trade for 1,000 shares valued at $60,180 was made by LECHLEITER JOHN C on Thursday, April 21. 50,000 shares were sold by PARKER MARK G, worth $3.00 million on Wednesday, April 20. Slusher John F had sold 40,000 shares worth $2.37M on Thursday, April 28. Krane Hilary K sold $3.25M worth of stock or 55,000 shares.

More notable recent Nike Inc (NYSE:NKE) news were published by: Fool.com which released: “Better Buy: Nike Inc. or Skechers USA Inc?” on October 13, 2016, also Fool.com with their article: “Adidas Goes on the Offensive — Should Nike Inc. Investors Worry?” published on October 06, 2016, Bloomberg.com published: “Nike’s Order Slowdown Sparks Concern That Rivals Are Gaining” on September 27, 2016. More interesting news about Nike Inc (NYSE:NKE) were released by: Investorplace.com and their article: “How Nike Inc’s Strategic Initiatives Continue to Propel Growth (NKE)” published on October 11, 2016 as well as Benzinga.com‘s news article titled: “Stocks Hitting 52-Week Lows” with publication date: October 17, 2016.

NKE Company Profile

NIKE, Inc., incorporated on September 8, 1969, is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company’s operating divisions include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. The Company’s portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse. The Firm sells its products to retail accounts, through its retail stores and Internet Websites, and through a mix of independent distributors and licensees across the world. The Company’s products are manufactured by independent contractors.